Circular 03/2023/TT-NHNN cease effect of Clause 11, Article 4 of Circular 16/2021/TT-NHNN purchase, sale of corporate bonds

CIRCULAR

On the cessation of effect of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN of November 10, 2021, of the Governor of the State Bank of Vietnam, providing for the purchase and sale of corporate bonds by credit institutions and foreign bank branches^[1]

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 16, 2010 Law on Credit Institutions; and the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the Government’s Decree No. 102/2022/ND-CP of December 12, 2022, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam promulgates the Circular on the cessation of effect of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN of November 10, 2021, of the Governor of the State Bank of Vietnam, providing for the purchase and sale of corporate bonds by credit institutions and foreign bank branches (below referred to as Circular No. 16/2021/TT-NHNN).

Article 1. To cease the effect of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN from April 24, 2023, through December 31, 2023.

During the period of cessation of effect of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN under this Article, credit institutions and foreign bank branches (below collectively referred to as credit institutions) may redeem corporate bonds not yet listed on the securities market or not yet registered for being traded on the Upcom trading system (below collectively referred to as unlisted corporate bonds) they have sold and/or unlisted corporate bonds issued in the same batches/drives with the issuance of unlisted corporate bonds they have sold when:

a/ Such a credit institution complies with Article 4 of Circular No. 16/2021/TT-NHNN;

b/ The purchaser of such corporate bonds from such a credit institution pays the entire amount for the purchase of corporate bonds at the time the credit institution signs a contract to sell corporate bonds to the bond purchaser;

c/ The bond issuer is rated as the highest according to internal credit-rating regulations of such a credit institution at the nearest time before the credit institution purchases corporate bonds.

Article 2. Implementation provision 

This Circular takes effect on April 24, 2023.

Article 3. Responsibility for organization of implementation

The Chief of the Office, the Director of the Monetary Policy Department, and heads of units of the State Bank of Vietnam, directors of provincial-level branches of the State Bank of Vietnam, and credit institutions shall organize the implementation of this Circular.-

For the State Bank Governor
Deputy Governor
PHAM THANH HA